Bad BET: Kelly's business tax increasesEDITORIAL
September 17. 2018 5:20PM
Molly Kelly is wrong about New Hampshire business taxes.
As a state senator, Kelly staunchly opposed Republican efforts to lower New Hampshire’s punishing business tax rates, as Kelly and her fellow Democrats argued doing so would would “blow a $90 million hole in the budget.”
Kelly was wrong about that. Business tax revenues have been booming after Republicans cut rates for both the Business Profits Tax (BPT) and Business Enterprise Tax (BET.)
Kelly now chides Gov. Chris Sununu for “funding tax breaks for the wealthy corporations” instead of social services.
Kelly is wrong about that, too. All New Hampshire businesses are benefitting from lower rates. There are no special breaks for wealthy corporations. If elected, Kelly promises to increase the BET by 50 percent, increasing payroll costs for all but the smallest New Hampshire employers.
Kelly is wrong about the state lacking money. The state has a surplus, which the Legislature has used to fill the Rainy Day Fund and provide additional funding for many programs.
If Kelly wants to spend more on certain programs, there is room within the current tax framework. There is no need to raise New Hampshire business taxes higher than those in neighboring states.
Kelly fought for years against business tax rate cuts. Having been proven wrong about the consequences, she would raise them again anyway.